Netflix: Is it illegal to share passwords after policy to charge viewers for sub-accounts?

Netflix is trying to make it more difficult for customers to share passwords with those outside their households.

The streaming service is implementing a new scheme which charges people for ‘sub-accounts’.

It has been trialled in South America, and there are plans to push it further.

With this in mind, viewers will be wondering if they can share passwords and whether it is illegal to do so.

Here is what you need to know:

Why is Netflix curbing password sharing?

Subscribers will soon have to pay if they want people from outside their household to access their account.

Viewers can already port their watch history, games, lists and settings to a different account.

Netflix introduced this to try and encourage hesitant customers to get a subscription.

It has been common for people to share passwords with friends that do not live with them.

Speaking about the new scheme, Netflix said: ‘After listening to consumer feedback, we are going to offer the ability for borrowers to transfer their Netflix profile into their own account, and for sharers to manage their devices more easily and to create sub-accounts (“extra members”) if they want to pay for family or friends.

‘In countries with our lower-priced ad-supported plan, we expect the profile transfer option for borrowers to be especially popular.’

Netflix added that people sharing their accounts ‘impacted’ their ability to invest in new TV shows and films.

When is it being implemented?

Costs for making a sub-account is currently unknown.

The ‘add an extra member’ option was recently trialled in Peru, Chile and Costa Rica.

It allowed people to share their account with two people outside their household.

Chileans were charged 2.38 pesos, the equivalent of £2.26.

Netflix reported they will introduce the change in early 2023.

They added: ‘We’ve landed on a thoughtful approach to monetize account sharing and we’ll begin rolling this out more broadly starting in early 2023.’

Is it illegal to share your password?

Although it is not a crime specifically to share streaming service passwords, it has always been against Netflix’s terms of service.

In the terms and conditions, Netflix said: ‘The Netflix service and any content accessed through the service are for your personal and non-commercial use only and may not be shared with individuals beyond your household.

‘During your Netflix membership we grant you a limited, non-exclusive, non-transferable right to access the Netflix service and Netflix content.

‘Except for the foregoing, no right, title or interest shall be transferred to you.

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‘You agree not to use the service for public performances.’

The definition of a household is not mentioned.

Sharing passwords for accounts is not defined specifically as breaching copyright in a traditional manner, such as sharing clips of exclusive Netflix shows on social media.

Netflix’s new subscription option

The streaming platform will be launching a cheaper package next month.

It will cost £4.99 and will be available from November 3.

This new package will include adverts, contrary to the other services Netflix provides, and does not allow people to download shows.